Why Are Mallinckrodt Shares Tumbling Today

Mallinckrodt Plc MNK is reportedly considering options, including filing for bankruptcy again as a $200 million opioid settlement payment is due within weeks.
The company must pay to an opioid-victims compensation trust by mid-June as part of its Chapter 11 exit plan, Wall Street Journal said.
The company filed for bankruptcy protection nearly three years ago. It reached a $1.7 billion nationwide settlement as part of its bankruptcy reorganization plan and emerged from Chapter 11 last year.
In an SEC filing, the company said it had received letters from several parties, including lenders, that asked the company to consider alternative options.
Its board was considering all options, with some lenders having proposed actions other than filing for bankruptcy, but there can be no assurance of the outcome of the process, Mallinckrodt said.
Price Action: MNK shares are down 28.20% at $1.76 on the last check Monday.